Legal Representative Service

Having a legal representative in Chile is a fundamental requirement for any foreign company wishing to establish itself in the country. 

This representative acts on behalf of the company to comply with administrative, legal and financial obligations, ensuring compliance with local regulations. 

At Iberocapital, we specialize in providing an efficient and secure legal representation service, positioning ourselves as your ideal strategic partner for a successful expansion in Chile.

What does the Legal Representative service in Chile consist of? 

The legal representative is the person appointed by a company to act on its behalf within the framework of Chilean law. Their responsibilities include signing contracts, representing public bodies, and managing administrative and financial procedures. 

This role is essential to ensure that the company complies with all legal obligations and to act on behalf of the company in situations that may involve litigation. The legal representative, in short, is the one who ensures that the company operates properly and complies with local laws.

Is it mandatory to have a legal representative in Chile?

Yes, it is mandatory for any foreign company wishing to operate in Chile to have a legal representative. This obligation is established in Chilean legislation to ensure that all companies have a responsible person in the country who can act on their behalf and respond to their legal, financial and administrative obligations.

The legal representative is responsible for signing documents, representing the company before public bodies, and ensuring compliance with local regulations, which is essential for the correct operation of the company.

What are the functions of a Legal Representative?

The legal representative in Chile has a series of key functions and responsibilities that are clearly defined by Chilean legislation. 

These include representing the company before government authorities, signing legal and contractual documents, and managing administrative procedures. 

Specific functions include: 

• Opening bank accounts, 
• Issuing invoices,
• Signing employment contracts, 
• Signing rental contracts,
• Representation at shareholders' meetings,
• Modifications to the company, among others.

In addition, the legal representative is responsible for ensuring that the company complies with all tax, labor and regulatory obligations, acting as an intermediary between the company and Chilean institutions. 

In the event of litigation, the legal representative also acts in defense of the company's interests. This figure is crucial to ensure that the company operates within the Chilean legal framework, minimizing risks and facilitating compliance with all regulations.

At Iberocapital we have acted as legal representatives of foreign companies from countries such as:

• Argentina
• Brasil
• China
• Estados Unidos
• España
• México
• Perú
• Venezuela
• Vietnam

We therefore have extensive experience in understanding the regulatory and commercial frameworks for legal representation services for foreign companies in Chile.

The Legal Representative of your Company will be a Member of our Board of Directors, an executive with a highly qualified business track record and clean business background.

How much does the Legal Representative service cost?

Prices for legal representative services start at USD 200 per month, depending on the level of responsibilities and market risk according to the sector of the company to be represented. 

Factors such as billing levels, number of employees, and the complexity of the company's operations can increase the cost of the service. The base rate of $200 per month applies to micro-enterprises with a monthly billing of up to $5,000 per month or with less than 10 employees (in Chile).

For companies with higher turnover or more complex structures, the cost of the service may increase due to the greater burden of responsibilities of the legal representative. For example, companies with more than 10 employees, with turnover exceeding USD 5,000 per month, or operating in highly regulated sectors (such as cryptoassets), may require a legal representative with a higher level of commitment and experience. This translates into additional costs that reflect the increased risks and responsibilities involved.

In addition, the service may include additional tasks such as opening corporate bank accounts, obtaining specific permits, representation in complex legal proceedings, and managing relations with government agencies, which may also influence the final fee. 

Please note that in addition to the monthly fee of USD 200, you must take into account the costs associated with notarization and legalization of documents, costs that are beyond our control and depend exclusively on the agencies where the procedures are carried out.

At Iberocapital, we evaluate each case on a personalized basis to offer a service tailored to the particular needs of each client, always guaranteeing maximum efficiency and compliance with local regulations.

You can always choose to take the base rate of 200 USD per month and hire additional services such as monthly salaries or accounting, or request specific professional services at a rate of 2 UF per hour.

The base rate of $200 per month includes:

• Servicio de Representación Legal en Chile.
• Opening digital bank accounts.
• Access to the billing system.
• Signing of lease agreement.
• Signing of employment contract.

You can add additional services such as a confidentiality agreement between the Legal Representative and your company for a value of 100 USD / Single Value.

The usual response time is 48 business hours for any type of request. If your request requires a shorter response time, this will have an additional cost.

For how long can I hire a legal representative with Iberocapital?

The minimum term for contracting a Legal Representation Service in Chile is 3 months. Notwithstanding this, the recommended standard is 1 year, as this allows for greater continuity and stability in the representation of the company.

During this time, Iberocapital ensures that the legal representative is fully aligned with the company's objectives and needs, providing a constant and efficient service that facilitates operations and regulatory compliance.

What requirements do I need to hire the legal representative service?

At Iberocapital we have different requirements, which we divide into several categories depending on the type of company that needs the service.

Subsidiary of a Foreign Company

If the company requiring a legal representative is a subsidiary of a foreign company, it may be necessary to provide business records proving the economic viability of the parent company. 

This includes accounting documentation, previous contracts, financial reports and any other information relevant to the operational and legal management of the company. This type of assessment is crucial to ensure that the subsidiary has sufficient support to operate stably in Chile.

New Company with Foreign Investors

If the company is new and depends solely on foreign investors, natural persons, it may be necessary to request criminal records of the investors. This measure is intended to ensure that the investors have a clean record and that their participation does not represent legal or financial risks for the operation in Chile.

Company with Chilean Shareholders

If the company requiring a legal representative has Chilean shareholders, in addition to the criminal records of the shareholders, verification in commercial and debtors or defaulters bulletins will also be requested. This helps to ensure that the shareholders have an adequate financial profile and that there are no significant debts that could affect the stability of the company.

These requirements are designed to ensure effective legal representation and minimize the risks associated with operating the company in Chile. At Iberocapital, we evaluate each case individually, providing personalized attention to ensure that all necessary documents are in order and that the process of hiring the legal representative is as smooth as possible.

Early termination of legal representative service

As part of the legal representative service, it is essential to ensure the legality of the operations and funds managed. 

If you hire our Legal Representation service, you declare that all funds that will be managed in the Company's bank accounts, to which the legal representative of Iberocapital will have access, come from lawful activities and comply with the applicable national and international regulations regarding the prevention of money laundering, terrorist financing and other financial crimes.

You also agree not to use the Company's bank accounts or the services of the legal representative for illegal purposes. All transactions must comply with applicable law and will be subject to compliance controls.

In the event of detecting any suspicious or illicit activity related to funds or bank accounts, Iberocapital reserves the right to suspend its representation services immediately and notify the competent authorities, ensuring full transparency and compliance with legal regulations.

Likewise, you release Iberocapital and its legal representative from all liability for any claim, demand or legal procedure that may arise as a result of the management of the Company's funds.

Please note that you also agree to indemnify and hold harmless Iberocapital and its legal representative for any damage, loss, fine, penalty or expense arising from the management of the Legal Representative service.

Benefits of Hiring the Legal Representative Service with Iberocapital

• Experiencia en el Mercado Chileno: En Iberocapital contamos con años de experiencia en el mercado chileno, lo que nos permite comprender en profundidad los marcos regulatorios y comerciales del país. Esta experiencia nos permite ofrecerte un servicio adaptado a las exigencias locales.
• Seguridad y Transparencia: Nuestra prioridad es ofrecer un servicio transparente y de confianza. Seleccionamos cuidadosamente a nuestros representantes legales, quienes cuentan con antecedentes limpios y la capacidad de actuar con profesionalismo en nombre de tu empresa.
• Eficiencia en Trámites y Cumplimiento: Nuestro equipo se encarga de todos los trámites necesarios para asegurar que tu empresa cumpla con la normativa local, evitando sanciones y posibles problemas legales.
• Flexibilidad y Personalización del Servicio: Entendemos que cada cliente tiene necesidades únicas, por lo que nuestro servicio de representación legal está diseñado para adaptarse a tus requerimientos específicos, ofreciendo soluciones hechas a medida.

When Do You Need a Legal Representative?

• Establecimiento de una Empresa en Chile: Si deseas constituir una empresa en Chile, necesitarás un representante legal para gestionar el proceso de creación y para firmar los documentos correspondientes.
• Registro de Inversiones Extranjeras: Para empresas extranjeras que desean realizar inversiones en Chile, el representante legal es fundamental en el proceso de registro y autorización de dichas inversiones.
• Gestión de Empleados en Chile: Si tu empresa desea contratar empleados en Chile, necesitarás un representante legal para cumplir con las obligaciones laborales y representar a la empresa ante las autoridades correspondientes.

Conclusions

If you are looking to establish yourself in Chile and need a reliable legal representative, Iberocapital is here to help you.

Our team of experts is ready to facilitate your expansion and ensure that your company meets all local requirements. Contact us today and take the first step towards a successful expansion in Chile!